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Business News/ Companies / Sadbhav Engineering files petition against Gammon India, subsidiary
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Sadbhav Engineering files petition against Gammon India, subsidiary

Firm is seeking relief from 'certain alleged acts of oppression and mismanagement' at Mumbai Nasik Expressway Ltd

Currently, 20% of the paid up capital in Mumbai Nashik Expressway is held by Sadbhav Engineering while the remaining 80% is held by Gammon Infrastructure.Premium
Currently, 20% of the paid up capital in Mumbai Nashik Expressway is held by Sadbhav Engineering while the remaining 80% is held by Gammon Infrastructure.

Mumbai: Sadbhav Engineering Ltd on Thursday said it has filed a petition before the Company Law Board of Mumbai against Gammon India Ltd, its subsidiary Gammon Infrastructure Projects Ltd and its directors, seeking relief from “certain alleged acts of oppression and mismanagement" at Mumbai Nasik Expressway Ltd.

Mumbai Nasik Expressway Ltd is the special purpose vehicle promoted by Gammon India’s unit Gammon Infrastructure Projects to develop, operate and manage the Vadape to Gonde section of the National Highway no.3 in Maharashtra.

Currently, 20% of the paid up capital in Mumbai Nashik Expressway is held by Sadbhav Engineering while the remaining 80% is held by Gammon Infrastructure. The matter is likely to come up for first hearing shortly, Sadhbav Engineering said in a filing to the BSE.

Gammon India confirmed in its filing to the BSE that it has received a copy of petition. “The company is examining the petition and will contest it," Gammon India said in the filing.

In January, Gammon Infrastructure Projects had said it will buy out Sadbhav Engineering’s 20% stake in Mumbai Nasik Expressway for about 72 crore.

The deal has not gone through.

“We could not buy the 20% stake (in Mumbai Nashik Expressway) by June 30 as was decided due to lack of cash. We have asked for an extension of 3 months to honour the agreement. This has led to some differences between us (Gammon and Sadbhav Engineering). Besides this there is no mismanagement at all," K.K. Mohanty, managing director, Gammon Infrastructure Projects, said when contacted on the phone.

Phonecalls to the spokesperson for Sadhbhav Engineering were not answered.

Gammon Infrastructure’s shares fell 4.3% to 11.64 on BSE. Sadbhav Engineering gained 1.3% to 314.10, while the benchmark BSE Sensex shed 0.4% to 28,370 points.

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Published: 23 Jul 2015, 07:56 PM IST
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